Archive for trade gold online

The December gold futures contract closed the session at $1734.90 per ounce, reversing yesterday’s small pullback having just failed to breach the $1740 per ounce in the trading session. For the second day in succession we have now seen an “inside day” on the daily gold chart with gold prices trading within the magenta widespread bar of Friday which saw gold futures surge higher in much the same way as of the previous week.

This has now become a feature of the current bullish momentum with the price of gold moving sharply higher before pausing and then continuing its upwards journey. Since the breakout of late August, gold futures have looked increasingly bullish and with the recent weakness in the US Dollar this has given the precious metal further impetus and, in the next weeks, we can expect to see gold breach the $1800 per ounce price point. A price level last seen in late February this year.

As we can see on the gold chart the Hawkeye heatmap remains firmly bullish and with the 3 day trend also firmly green and strong buying volume in both timeframes the outlook remains hugely positive.Indeed, on Thursday this week commodities and gold, in particular, are likely to receive a further boost with FED Chairman Bernanke expected to fire the starting gun for a further round of quantitative easing. This should weaken the US dollar still further, as a result.

If you would like to see Hawkeye in action, please just click on the following link to join me in one of my Free live trading rooms – I look forward to seeing you there.

The price of gold has paused for breath over the last few days following the sharp rise of last week, and with a holiday shortened week, the market has drifted sideways, as the December gold futures flirt with the $1700 per ounce level. Friday of course sees the monthly release of the Non Farm Payroll data, and with yesterday’s ADP suggesting a positive release, we could see a better than expected figure. However, over the last few months, the ADP figures have been some way off the mark, in forecasting the more significant NFP numbers, so no doubt the markets will be cautious ahead of the release. Of far more significance to the price of gold, will be the likely weakening of the US dollar, once a further round of quantitative easing is unveiled, and even one good set of numbers in the NFP release tomorrow, are unlikely to divert the Federal Reserve from it’s chosen path. If QE3 is released, as now seems certain, then we can expect to see gold prices climb further in due course, and re-test the $1800 per ounce level of late February earlier this year.

From a technical perspective, the outlook remains firmly bullish, with strong buying volume on the daily chart. However on the three day chart we can see that over the last three days have see white volume, or no demand volume in this timeframe, reflecting the temporary pause point in the price action, as we test the $1700 per ounce level. The daily trend remains firmly green, and with a bright green Heatmap, sentiment for gold remains positive in the short to medium term, and we can expect to see the current trend develop further before testing the underside of strong resistance in the $1740 per ounce area. A break and hold here should see gold move firmly higher and on towards the $1800 per ounce region towards the end of the year.

If you would like to see Hawkeye in action, please just click on the following link to join one of our Free live trading rooms – I look forward to seeing you there.

Gold futures surged higher on Friday with the December Comex contract ending the session and week at $1687.60, it’s highest level for over five months. Friday’s surge in the price of gold was largely triggered by weakness in the US dollar, which sold off during the trading session following the statement by FED chairman Ben Bernanke in which he hinted that the Federal Reserve were ‘ready to pull the trigger’ for a further round of quantitative easing. With this much vaunted stimulus for the US economy now virtually guaranteed, this will no doubt provide the catalyst for further gains in the gold price, with a consequent weakening in the US dollar as a result.

From a technical perspective the recent breakout on the daily gold chart gave a clear signal of the bullish sentiment, following the sustained period of sideways congestion which saw the precious metal trade in a narrow range throughout the summer. The breakout finally arrived on the 21st August, finally breaking and holding above the $1640 per ounce level, and with this strong platform now in place, gold looks set to build a sustained bullish trend over the next few months.

Hawkeye delivered a conservative Roadkill signal on the 24th August, as bullish volume on both the one day and three day charts, coupled with a bright green Heatmap and bullish trend on the three day chart, all combined to deliver an entry to the market. The only minor point to note is that selling volume entered the market on Thursday, followed by no demand volume on Friday, but this was almost certainly due to gold traders squaring their positions ahead of the three day weekend coupled with month end.

With the initial breakout now complete we can expect to see further bullish sentiment for the metal over the next few weeks, with an initial test of the resistance now in place at the $1720 per ounce level, which extends to $1760 per ounce. A breach of this level, should then see gold price move on to test the high of mid February at the psychological $1800 per ounce in due course.

If you would like to see Hawkeye in action, simply click on the link here and join me in one of my Free live trading rooms – I look forward to seeing you there!

Not a great day for gold bulls as the gold price ran into the strong area of resistance in the $1640 price region. However, a great day for intraday gold traders who managed to capitalise on this failure to penetrate this area in the last hour of the floor session as the price tumbled from $1638 to a low of $1614. All this was captured on our Hawkeye 816 tick chart which gave us both an aggressive volume based roadkill signal, followed almost immediately by a more conservative trend roadkill entry signal. These entry signals were accompanied by a red trend in both time frames, a red heat map and, of course, selling volume in both timeframes. With all our indicators lining up there was no reason not to take the trade to the short side. The fall in the gold price has also coincided with a dramatic move higher in equity markets which today has seen the DOW rise almost 300 points as traders and investors appear to be sensing a further round of quantitative easing.

With the gold price now consolidating in a relatively tight range between $1625 and $1614 gold traders now need to wait to see whether last Friday’s surge higher for gold is likely to be sustained or was simply a knee jerk reaction to the recent slew of appalling economic news.

Following the strong rally for spot gold last Friday the precious metal traded in a narrow range yesterday, consolidating the gains which saw it move from a low of $1544 per ounce to close ahead of the weekend at $1622.78 per ounce. Friday’s high of $1629.77 ran into stiff price resistance which now resides in this area and extends all the way through to the $1679 per ounce region and beyond. So any further strong gains for gold will need sustained buying momentum to break through this deep area of resistance.

To the downside on the daily gold chart, gold has created a triple bottom price action in the $1530 per ounce region which has provided the strong platform and was the springboard for Friday’s surge higher.

Moving to our intra day charts and the gold futures on the CME exchange we have already seen some bullish momentum in the market with strong buying on our volume bars, a green heatmap and several entry set ups from our roadkill signals across our three tick charts. In addition the GC August contract has also just broken above the $1617 per ounce region which has now created a platform of support on an intra day basis for gold bulls.